How much startup cash does a business actually need?
Updated: Oct 28, 2019
With the majority of startup funds coming directly from entrepreneurs personal savings, do you even need outside financing to get started?
According to Michael Guta, a writer for Small Business Trends, 82% of businesses failure is due to poor cash flow management. But where do most startup funds come from in the first place? Bank loans and deep pocket investors, right? The majority of the capital actually comes from personal savings or income from another job. According to SCORE, the biggest concern for startups is securing the necessary cash flow for the first year of operation. In this article, Michael lays out exactly how business are choosing to finance costs and where they are spending those first dollars.